Transitioning to an Electric Vehicle Infrastructure: Some Considerations for Policymakers Rona Cohen CSG/ERC Energy & Environment Committee Meeting August 16, 2020 Portland, Maine Overview Federal Commitment Manufacture Commitments State/Local Efforts Looking Forward – Broader Public-Policy Benefits of EVs Policy Suggestions from Recent CSG/ERC Meetings Strong Federal Commitment to Creating an EV Infrastructure Recovery Act sending more than $5 billion to electrify transportation sector: $2.4 bln to develop EV battery manufacturing plants; $1.4 bln to Nissan for EV manufacturing plant in TN; $528.7 mln to Fisker for plant in DE; $465 mln to Tesla to revive GM plant in CA ($50 mln from Toyota) In MI, 17 new battery plants in operation, under construction or breaking ground Transportation Electrification program developing 20,000 charging stations 8 demonstration projects to test 13,000 EVs under real weather conditions Goals: 30 U.S. EV battery manufacturing plants by 2012; 1 million plug-in HEVs by 2015; significant job creation, lower dependence on foreign oil U.S. Senate: PEVA Act would provide additional $3.6 bln to create “deployment communities” and subsidize purchase of plug-in EVs and charging infrastructure Passed Senate Energy Committee in July 19-4 with bipartisan support U.S. Senate STORAGE ACT (s.3617) would offer $1.5 bln in tax credits to storage projects connected to the power grid Manufacturer Commitments More than 15 major car manufacturers plan to roll out EVs within the next three years, including these by late 2010: Tesla Roadster: Available today. Range: 244 miles Nissan Leaf: Late 2010. Range: 100 miles Ford Transit Connect (commercial van): Late 2010. Range: 80 miles Chevy Volt: Late 2010 (contains a battery pack capable of driving 40 miles, and a gas-powered onboard generator that creates electricity to power the engine after the battery has been depleted; provides an additional 300 mile range) Public and Private Efforts to Promote EV Infrastructure: Some Examples Many urban areas working to aggressively promote EV charging infrastructure include San Francisco, Seattle, Portland, Houston , Indianapolis and Orlando SF revised building codes requiring that new homes and office buildings be wired for electric chargers States promoting EV infrastructure include: CA: Last week announced $108 mln investment in EV battery R&D, worker training, charging stations CT: Gov. Rell formed EV Infrastructure Council. Final report due Sept. 1 HI: Aims to have statewide charging infrastructure in place by 2012 MA: MOU with Nissan MD: Charging stations along I-95 MI: $1 bln in tax credits for companies building advanced storage for EVs RI: Project Get Ready WA: Installing charging stations along I-5, from OR to Canada Six utilities in the Northeast (serving CT, MA, NH, NY & RI) formed the Regional Electric Vehicle Initiative in June 2009 Broader Public Policy Benefits: Potential to Help States Achieve Clean-Energy Goals Energy storage is the “Holy Grail” of the electricity sector. Through properly managed nighttime charging, EVs could utilize electricity from wind turbines, where available, which tends to be more robust at night. Creation of a secondary market for EV batteries could provide needed stationary storage for wind farms and PV arrays. Battery storage is already being tested in conjunction with wind projects. See “Wind Drives Growing Use of Batteries,” NY Times, July 27, 2010 Broader Public Policy Benefits: Grid Services Vehicle-to-Grid (V2G): Communication and transfer of electricity between EV and grid, enabled by use of certain technologies Research shows: Two-way communication devices can enable batteries to store power and sell it back to the grid in response to signals from grid operators. In pilots, provision of frequency regulation (balancing generation and load) currently valued at $30-$40 per MWh, just for making the resource available. Near-term possibilities for fleets: USPS interested in converting to electric vehicles and partnering in a V2G pilot with ISOs/RTOs Large benefits seen even with one-way power flows to grid-integrated vehicles (GIV): ISO can control time of charging and power level, and shut off power in times of emergency. Efforts in Other Countries Denmark: Edison V2G project will store excess wind energy when plentiful and feed back to grid during low-production periods Portugal aims to establish nationwide network of EV charging stations by end of 2011 Spain: Goal of having 250,000 EVs on the road by 2014 (85% in fleets) Israel expected to launch EV charging infrastructure in 2011 Japan: Auto companies, utility working to standardize fastcharging stations Ontario, Canada: As of July 1, rebates of $5,000 - $8,500 to first 10,000 individuals/businesses who purchase or lease a plug-in EV Policy Suggestions to Consider In recent conversations with stakeholders and academics, CSG/ERC received these recommendations, among others: Special electricity pricing needed for EV charging, including discounted off-peak pricing Pilots in San Diego, CA; HI Consider ways to replace lost revenue from gas taxes. Example: VMT fee? Need to incentivize V2G pilots for public and commercial fleets States should codify net metering for V2G capabilities Example: Delaware net-metering law Eventually, important to create secondary battery market for reuse in stationary storage applications Bottom line: Policymakers should be planning now to facilitate adoption of EV technologies that could prove game-changing for the power system going forward.